Business, 15.07.2020 01:01, taniyahbenyamin2

Advanced Products Corporation has supplied the following data from its activity-based costing system: Overhead Costs
Wages and salaries$300,000
Other overhead costs 100,000
Total overhead costs$400,000

Activity Cost PoolActivity MeasureTotal Activity
Supporting direct laborNumber of direct labor-hours20,000DLHs
Order processingNumber of customer orders400orders
Customer supportNumber of customers200customers
OtherThis is an organization-sustaining activityNot applicable

Distribution of Resource Consumption Across Activities
Direct Labor SupportOrder ProcessingCustomer SupportOtherTotal
Wages and salaries40%30%20%10%100%
Other overhead costs30%10%20%40%100%

During the year, Advanced Products completed one order for a new customer, Shenzhen Enterprises. This customer did not order any other products during the year. Data concerning that order follow:

Data Concerning the Shenzhen Enterprises Order
Units ordered 10units
Direct labor-hours 2DLHs per unit
Selling price $300per unit
Direct materials $180per unit
Direct labor $50per unit
4. Prepare a report showing the customer margin for Shenzhen Enterprises. (Negative customer margins should be indicated by a minus sign.)

Answers: 2

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Advanced Products Corporation has supplied the following data from its activity-based costing system...